Julphar will keep the production lines busy as new drugs are expected to make it to the pipeline. Image Credit: Gulf News Archive

Dubai: UAE’s biggest pharma company Julphar now has accumulated losses of Dh317.1 million, which it intends to address by restructuring its product mix as well as launch new therapeutic offerings in the market.

A first step in the recovery process is already underway with Julphar (or Gulf Pharmaceutical Industries) back to selling in markets such as Saudi Arabia, Kuwait, Bahrain and Oman after a ban was lifted in the first and second quarters of 2020.

For the first three months of this year, the Ras Al Khaimah headquartered company’s net loss reduced by 58 per cent from a year ago to Dh29.2 million as revenues gained and there was a decline in selling and distribution expenses.

Saqer Humaid Al Qasimi, Chairman, said: “It is encouraging to see the company continue to make strides in terms of sales growth and loss reduction during the last quarter. Following the progress of last year, we are confident that Julphar will be able to improve its financial and operational performance whilst unlocking exciting new opportunities.”

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Notable revenue strides

In Q1 2021, the company generated Dh166.8 million in sales, a 60 per cent increase from first quarter 2020, led by the "successful re-opening in core markets such as Saudi Arabia". Additionally, business in North African markets generated considerably higher sales.

Julphar last month secured a Dh1.01 billion syndicated loan facility from Arab Bank, RAKBank, and Dubai Islamic Bank. This enables it to refinance existing debt with an additional upsizing of Dh350 million to support investment and expansion plans in the medium to long-term.